The beginning capital balance is $1,000;there are no additional investments or withdrawals by the owner during the accounting period.The period's revenue is $600 and expenses total $550.What is the ending capital balance (after closing entries)?
A)$1,050
B)$1,500
C)$1,450
D)$50

Question

Quizplus · Accepted Answer

The ending capital balance is calculated by adding the net income (revenue minus expenses) to the beginning capital balance. Net income is $600 - $550 = $50. Therefore, the ending capital balance is $1,000 + $50 = $1,050.

The Beginning Capital Balance Is $1,000;there Are No Additional Investments